"I confirmed the dynamism of Korea, which is building the world's largest data center, on site. There are countless opportunities for Korea and the United Kingdom to grow together in artificial intelligence (AI) technology, renewable energy, and startups."
On the 8th, Poppy Gustafsson, Director General in charge of investment at the United Kingdom's Treasury and Department for Business and Trade, said this. Although Gustafsson is a newly appointed official who took office last October, she is regarded as a matriarch in the startup industry, having founded the cybersecurity firm Darktrace and nurtured its growth for over 10 years. She noted that her joining the Starmer Cabinet was motivated by "a strong commitment to growth."
She emphasized, "Raising corporations and growing the national economy ultimately follow the same principle. The United Kingdom, with its open and stable economy, prioritizes growth as its foremost task, making it an attractive destination for investment." She added, "Korea is also experiencing active technological consumption based on swift digitization. British corporations can seek to expand into the entire Asian market through Korea." The following is a Q&A with Director General Gustafsson.
─This is your first visit to Korea since taking office. I'm curious about the purpose of this trip and your overall schedule.
She said, "This is my first visit to Korea and also my first visit in my life. After arriving on the 7th, I have had a busy schedule. In my first itinerary, I met key investors such as SeAH and Korea Investment Corporation (KIC), and I plan to meet with more investors until this afternoon. Afterwards, I will have a meeting with Korean women entrepreneurs before moving to Tokyo, Japan, to continue my Asian tour. As a Director General responsible for attracting overseas investment to the UK and supporting British corporations in foreign expansions, my goal is to widely promote the attractiveness and investment value of the UK market, as well as convey possibilities for inter-country cooperation. Notably, the UK recently announced its long-term policy roadmap known as the 'Modern Industrial Strategy.' Promoting this is one of my primary goals."
─Please introduce the Modern Industrial Strategy.
She mentioned, "This is a policy roadmap designed to accelerate sustainable economic growth and industrial innovation. It is impossible to bring about change at just the level of 'wanting growth.' It is the result of closely collaborating with the industry to design which industries to focus on, what regulations or incentives are needed for the growth of those industries, what infrastructure to establish, and what kind of talent is required.
The UK particularly aims to foster industries centered around seven key growth sectors: ▲AI ▲digital technology ▲clean energy ▲life sciences ▲aerospace ▲advanced manufacturing ▲financial services. For instance, regarding contentious issues like the runway extension project at Heathrow Airport, we will make decisions to pursue change if it is a necessary process for growth."
─What areas have high potential for cooperation with Korea?
"First and foremost, it's AI. The UK is currently one of the leading countries in AI technology in the world. The number of AI startups in the UK exceeds that of France and Germany combined, and the ecosystem value of technology companies has surpassed 1 trillion pounds (about 1,800 trillion won). Recently, we announced the 'AI Opportunities Action Plan' and also initiated 200 million pounds in public investment.
However, AI cannot grow without infrastructure. This is why we are paying attention to Korea's massive data center investments and semiconductor manufacturing capabilities. Few countries worldwide possess the physical foundation necessary for AI tasks, and Korea is one of them. I confirmed Korea's potential once again by meeting with chief AI officer Ha Jung-woo. If the UK and Korea collaborate in this field, we can lead world-class innovation together."
─I heard there are also cooperation cases with Korea in the energy sector.
"That is correct. The UK is focusing its national capabilities on clean energy, especially offshore wind power, with the goal of achieving carbon neutrality by 2050. Recently, SeAH Wind, a subsidiary of SeAH Steel Holdings, invested in a manufacturing facility for structures for offshore wind power in the UK, which is a representative case of an industrial ecosystem partnership that goes beyond technical cooperation.
Additionally, the National Pension Service (NPS) has invested 300 million pounds (about 559.5 billion won) in the UK's housing supply expansion fund. The UK aims to supply 1.5 million new dwellings in the future, and the participation of Korea's pension fund in such infrastructure investment demonstrates trust and strategic synergy potential.
─There have been criticisms that London has lost its appeal as an investment destination due to the UK government reducing tax incentives.
"It is true that the UK abolished the tax exemption for foreign income last year. However, the UK still maintains the most competitive corporate tax rates in Europe and has the most generous research and development (R&D) tax relief system. This is further supported by the fact that the UK has the third-highest number of technology companies and venture capital after the United States and China.
One important point to note is that we must break away from the stereotype that 'the UK is soon London.' Of course, while London is one of the world's top financial cities, outstanding technology ecosystems are also growing in places like Manchester, Dundee, and Edinburgh. For example, isn't the gaming industry in Scotland competitively robust? We need to recognize the potential of the entire UK.
─Will the expansion of Korean corporations into the UK aid in their global expansion? Please also evaluate the prospects for UK corporations entering Korea.
"I assert that entering the UK will lead to expansion into other countries. When Korean corporations enter the UK, we regard them as 'British corporations' and provide various support measures. This includes ▲talent training ▲local settlement assistance ▲export financing for entry into third markets such as Africa, India, and South America ▲connections with trading partners, offering customized support.
I expect that UK corporations will actively enter Korea as well. Korea is the nation with the fastest digitization process in the world. Domestic consumption power is also significant, and it can serve as a strategic hub for entering Northeast Asian markets. British corporations in various fields such as AI, bio, gaming, and aerospace will find much to learn through entering Korea. I foresee much greater mutual investment in the future."